Cost per Hire (CPH) is one of the most fundamental recruitment metrics, representing the average amount of money a company spends to hire a new employee. It is calculated by dividing the total recruitment costs (both internal and external) by the total number of hires in a given period. External costs include job board fees, agency commissions, and background checks, while internal costs cover recruiter salaries, referral bonuses, and software expenses. Monitoring CPH helps organizations budget effectively and evaluate the cost-efficiency of their talent acquisition strategies.